As global demand grows for fashion that is authentic, sustainable, and culturally rooted, Africa stands at a powerful crossroads. With its deep heritage, abundant natural resources, and a dynamic, creative youth population, the continent holds a unique advantage in becoming a global trendsetter, especially in the leather industry.
Africa holds 20% of the world’s cattle, sheep, and goats a clear indicator of its potential in the global leather market. Yet, the continent produces only 14.9% of the world’s hides and skins, and a mere 4.5% of bovine hides, despite owning 10% of the world’s cattle. Export figures reflect a similar story: Africa’s share of global hides and skins exports declined from 4% to 2%, while tanning capacity shrank from 9.2% to 6.8%. Meanwhile, other developing regions have rapidly expanded their share in global footwear production, leaving Africa with only modest gains. Today, over 73% of African leather footwear is imported from other developing countries.
This disconnect between abundant resources and low production output reveals a massive, untapped opportunity. The continent’s leather industry remains underdeveloped and fragmented, struggling to integrate into global value chains. But it doesn't have to stay this way.
The leather sector is not only labor-intensive, offering strong potential for job creation, but also based on renewable resources, making it a strategic lever for industrial development. In countries like Ethiopia, which has Africa’s largest cattle population, leather and footwear manufacturing already contribute up to 74% of manufacturing value added (MVA), and account for 4–5% of industrial employment in many surveyed nations
Africa is uniquely positioned to shift from simply tanning leather to setting global fashion trends. The question is no longer if Africa can lead, but how fast it can scale.
Opportunities in the leather value chain in Africa
Social Inclusion: The leather sector can generate millions of rural jobs, especially for women and youth, through small-scale processing and skills training. Inclusive policies, cooperatives, and fair labor practices are key to ensuring equitable access and market entry.
Economic Growth: With over 70% of raw hides exported unprocessed, value addition through local tanning and finished goods can multiply earnings. Supportive government incentives and SME financing can unlock this potential.
Environmental Sustainability: Industry must address pollution from traditional tanning. Eco-friendly methods like plant-based tanning, water recycling, and converting waste into biofuel or feed can promote a circular, greener economy.
Africa's leather industry has the potential to go beyond tanning hides; it can craft compelling stories, build strong brands, and set global trends. With the right investments and policy support, Africa can transition from being at the back end of the value chain to taking a prominent position on the global fashion stage. The key challenge and the opportunity are scaling these successes across the continent.
If you're ready to scale up leather production in Africa, Oxano Capital is here to support you. Reach out today!